DigitalOcean (NYSE:DOCN) Sees Large Volume Increase - Time to Buy?

Key Points

• DigitalOcean's shares experienced a trading volume of 1,603,050 on Tuesday, which is a 2% decrease from the previous day.
• Wall Street analysts have mixed ratings, with seven buy ratings, one sell rating, and an average price target of $41.45.
• The company reported a quarterly earnings per share of $0.59, surpassing estimates, and a revenue increase of 13.6% year-over-year.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) shares saw strong trading volume on Tuesday . 1,603,050 shares traded hands during mid-day trading, a decline of 2% from the previous session's volume of 1,637,611 shares.The stock last traded at $29.40 and had previously closed at $29.56.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research report on Tuesday, August 5th. Barclays raised their target price on DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. The Goldman Sachs Group lowered their target price on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. UBS Group lowered their target price on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating on the stock in a research report on Thursday, May 8th. Finally, Citigroup lowered their target price on DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, DigitalOcean currently has an average rating of "Hold" and an average target price of $41.45.

DigitalOcean Stock Performance

The business has a 50 day simple moving average of $29.08 and a 200-day simple moving average of $32.68. The stock has a market capitalization of $2.78 billion, a P/E ratio of 23.47, a price-to-earnings-growth ratio of 2.13 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.12. The firm had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The firm's quarterly revenue was up 13.6% on a year-over-year basis. During the same period last year, the company posted $0.48 EPS. Equities research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the sale, the insider directly owned 294,546 shares of the company's stock, valued at $8,179,542.42. This trade represents a 1.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently modified their holdings of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of DigitalOcean by 3.4% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 308,072 shares of the company's stock worth $8,799,000 after acquiring an additional 10,234 shares in the last quarter. Caption Management LLC raised its holdings in DigitalOcean by 148.4% during the second quarter. Caption Management LLC now owns 18,463 shares of the company's stock valued at $527,000 after buying an additional 56,604 shares in the last quarter. Nebula Research & Development LLC bought a new position in DigitalOcean during the second quarter valued at about $2,154,000. Frontier Capital Management Co. LLC raised its holdings in DigitalOcean by 75.9% during the second quarter. Frontier Capital Management Co. LLC now owns 706,227 shares of the company's stock valued at $20,170,000 after buying an additional 304,805 shares in the last quarter. Finally, Qube Research & Technologies Ltd raised its holdings in DigitalOcean by 69.7% during the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock valued at $11,842,000 after buying an additional 170,339 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).